USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
R_it = return for stock i during period t
R_mt = return for the aggregate market during period t
-Refer to Exhibit 5.3. What is the abnormal rate of return for Elliot during period t using only the aggregate market return (ignore differential systematic risk) ?

A) 1.50
B) 1.10
C) -1.50
D) -5.10
E) -8.00